Politicians in North Carolina under scrutiny after a gambling-related scandal exposed by Fox 46's covert camera probe
In a surprising turn of events, a hidden camera footage, recorded when a TV crew tried to doorstep a poker game at Morgan's Tavern, has allegedly captured Jason Smith, the former Stanfield Town Councilman, handling a large amount of cash during a game.
Terry Pennington, the previous owner of Morgan's Tavern, claims that Smith installed a poker table in the bar the day after he sold it to him. When confronted by a FOX 46 reporter, Smith repeatedly denied that any gambling had occurred at the bar. One player in the poker game is heard saying, "Get it off the table," referring to the cash, implying an attempt to hide the evidence of gambling.
Stanfield Chief Corrie Faggart, who is located next to Morgan's Tavern, claimed to be shocked that gambling had been taking place at the premises. Chief Faggart showed a FOX 46 reporter alcohol violations issued by the Stanfield PD to Smith and Morgan's Tavern to prove that the former councilman was not receiving preferential treatment.
It is important to note that authorities in North Carolina take a hard line against poker home games, particularly if a rake is involved, and friends exchanging money for chips is illegal. Gambling is illegal in North Carolina outside of the state's two tribal casinos, the state lottery, and charitable bingo and raffles.
Jason Smith, along with Ernest Broadway, the current Oakboro Commissioner and chairman of the Oakboro Police Department, will be charged with misdemeanor illegal gambling. However, the hidden camera footage has not been publicly released, and it is unknown whether it will be used as evidence in any potential legal proceedings against Smith or the players.
Interestingly, Pennington believes authorities turned a blind eye because of Smith's political status. Pennington was prosecuted in 2014 for operating illegal video gambling machines at Morgan's Tavern. The poker game took place at the tavern, which is owned by Smith and his wife.
While specific regulations for raffles in North Carolina are not detailed, it is clear that charitable gaming activities, like bingo, are regulated and subject to certain conditions. Political poker games in bars would likely require compliance with state gaming laws, which could be more stringent than those for charitable activities.
This article was first posted on May 10, 2018, and last updated on June 23, 2025.
- Despite being charged with misdemeanor illegal gambling, concerns have been raised about potential political favoritism, as former Stanfield Town Councilman Jason Smith, who is engaged in a poker game at Morgan's Tavern, faces allegations, but authorities previously appears to have overlooked similar activities at the same bar run by Terry Pennington, who was previously prosecuted for operating illegal video gambling machines.
- In light of the recent allegations against Jason Smith regarding illegal poker games at Morgan's Tavern, the general news and crime-and-justice sectors are closely following the case, especially since the footage, if used as evidence, could potentially impact Smith's political future, given his former position in the town council.
- As the controversy surrounding Jason Smith's poker game at Morgan's Tavern unfolds, there has been renewed interest in the regulatory landscape for casino-and-gambling activities in North Carolina, with critics questioning the discrepancy in the handling of cases involving politicians compared to regular citizens, as shown by Terry Pennington's prosecution for video gambling machines, while Smith, a political figure, allegedly continues to engage in illegal gambling, including casino-games like poker.
